As Singapore grapples with the economic impact of the COVID-19 pandemic, the government issued various stimulus programs to provide financial support to businesses and individuals. Read on for a quick guide about the Resilience Budget application..
Prior to the release of the Solidarity Budget, Deputy Prime Minister and Finance Minister Heng Swee Keat made the announcement of the Resilience Budget, which is the second stimulus package to be granted after the Unity Budget announced last February 18.
Singapore Resilience Budget
The Resilience Budget is provided to further help businesses and corporations recover from the adverse economic impact of the coronavirus disease (COVID-19) through finance grants. S$48 billion supplements the prior Unity Budget of the government, with enhanced measures to combat the COVID-19. This second wave of stimulus fund focuses on addressing the immediate challenges of businesses and keeping them afloat despite the wreaking crisis.
Addressing Businesses’ Challenges
Cash flow Issues
By May 2020, a total of $5.6 billion would have been paid out as the administration pushes the wage support schemes for a timely assistance. The Singapore Resilience Budget application also enhances the wage credits to $500 million, bringing a $16.2 billion fund for the Job Support Scheme and Wage Credit Scheme.
Deferral of income tax payments will also be granted to businesses for three months with no application required.
The Property Tax Rebate included in the Resilience Budget is further enhanced through larger funds and covering more property types.
Property taxes will be waived for the qualified commercial properties more affected by the COVID-19, including hotels, service apartments, tourist attractions, shops and restaurants.
Offices, industrial properties and other businesses in non-residential areas affected by the pandemic are entitled to a 30% Property Tax Rebate for 2020.
Landlords are encouraged to roll rebate to its tenants through reduced rentals. This will ease the movement of cash and cost pressure to the tenants.
All government fees are also frozen for a year, starting from April 1 to March 31, 2021.
More financial plans are pushed for the benefit of the hardest-hit companies. Through these, access to credit will be easier for them.
The Enterprise Financing Scheme (EFS) - SME Working Capital Loan was improved to address SME cash flow concerns, and the Temporary Bridging Loan Programme (TBLP) was initiated for the tourism industry.
EFS- Trade Loan increased the maximum loan quantum to $10 million and raise the government’s risk-share to 80%.
The Loan Insurance Scheme also increased insurance premiums from 50% to 80%
TBLP broadened its scope to all enterprises, escalating the supported loan to $5 million. However, if your business demands more support, you can tap on the EFS-SME Working Capital Loan, with an enhanced principal from $600,000 to $1 million.
If you wish to defer capital payments for a year on the EFS- Working Capital Loan and TBLP loans, the government can coordinate with respective financial institutions, provided it will undergo an assessment before granting the deferral.
For other small business support, the Singapore government and the Monetary Authority will be lending a hand through working with banks and creditors regarding their loan obligations and insurance payments.
For more information about Singapore’s small business support, you can visit this page.
As the COVID-19 pandemic put the world at a halt, respective governments are taking necessary measures to soften the blow of the crisis to businesses and individuals. Singapore’s Resilience Budget application proves that proactive steps can keep your operations on the ground despite the global recession.
Preparing for the recovery of the business is a strategy we are all eyeing. If your business isn’t currently digitalized, you may find some trouble performing during this tough time. That’s why we’re here to help.
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